Down Payment Calculator
Find the down payment amount and resulting loan amount for any purchase price.
Try an example
$80,000.00
About this calculator
How This Down Payment Calculator Works
Enter a home price and a down payment percentage, and the calculator returns the down payment amount in dollars and the loan amount you'd need to finance the rest.
Worked Example
A $400,000 home with a 20% down payment requires $80,000 down, leaving a $320,000 loan to finance.
The Formula
Down payment = Price × Percentage, and Loan amount = Price − Down payment. Straightforward arithmetic, but the percentage you choose has real consequences beyond the upfront cash.
Why 20% Is a Common Benchmark
- Avoiding PMI — on a conventional loan, putting down less than 20% typically means paying private mortgage insurance until you build enough equity, adding to your monthly cost.
- Lower loan amount — a bigger down payment means less financed, which means less interest paid over the life of the loan.
- Better rates — lenders often offer more favorable interest rates to borrowers with more equity in the home from day one.
That said, many buyers put down less — some loan programs allow 3-10% down. The right number depends on your savings, how much you want to keep in reserve, and whether avoiding PMI is worth delaying a purchase. Once you've settled on a down payment, use the Mortgage Calculator to see the resulting monthly payment.
Worked example
A $400,000 home at 20% down needs an $80,000 down payment, leaving a $320,000 loan.
Frequently asked questions
Why is 20% down often mentioned as a target?
On a conventional mortgage, putting down 20% avoids private mortgage insurance (PMI), an extra monthly cost lenders charge on smaller down payments. It's a common benchmark, not a requirement.
Can I buy with less than 20% down?
Yes — many loan programs allow 3-5% down (or less for VA/USDA loans), typically with PMI added until you build enough equity.
Does a bigger down payment always make sense?
It lowers your loan amount, monthly payment, and total interest, but ties up more cash up front — whether that trade-off is worth it depends on your other financial priorities and how much cash reserve you want to keep.